U.S. software firms are the most successful companies of the 21st century. From software-as-a-service pioneers like Salesforce and Zoom to ads-powered giants such as Google and Facebook, software firms represent close to 30 percent of the S&P-500 index. But despite their ascendancy, these companies have an Achilles’ heel: they make costly and avoidable mistakes when they venture overseas. I know first-hand because I was a Europe-based executive at Google and Twitter from 2005 to 2016, when those companies first expanded abroad. Today I invest in software-as-a-service (SaaS) companies on both sides of the Atlantic.
What U.S. Startups Get Wrong About Expanding into Europe
Four common mistakes — and how to avoid them.
February 04, 2021
Tooga/Getty Images
Summary.
Expanding into the European market can be a significant boon for U.S. tech companies, on par with a new type of customer or a new product line. Why then, do so many companies get it wrong? Most make four common mistakes: mis-timing of the expansion, forgetting the root causes of domestic success, hiring the wrong leader, and over-delegation by the CEO.
New!
HBR Learning
Business Case Development Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Business Case Development. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Make your next business case more compelling.
Learn More & See All Courses
New!
HBR Learning
HBR Learning
Business Case Development Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Business Case Development. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Make your next business case more compelling.